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Maruti Suzuki Navigates Profit Dip Amidst Expansion
29 Apr
Summary
- Maruti Suzuki's net profit fell 7% due to investment losses and rising costs.
- Company plans to increase annual production capacity to four million units.
- Maruti Suzuki aims to expand its EV presence and charging infrastructure significantly.
Maruti Suzuki experienced a 7% year-on-year decrease in its March quarter net profit, attributed to mark-to-market losses on investments and rising input costs. Despite this short-term pressure, the company recorded its highest-ever domestic and export volumes, net sales, and net profit in FY26, aided by a strong second-half performance post-GST reduction.
The company is actively addressing production capacity limitations, which led to a backlog of approximately 190,000 customer orders at the end of FY26. To overcome this, it commissioned a new plant in Haryana in April 2026 and is expanding its Gujarat facility, aiming to reach an annual capacity of four million units from the current 2.4 million.
Maruti Suzuki is also strategically increasing its presence in the electric vehicle (EV) segment. The ongoing expansion of its Gujarat production line will help manage EV capacity constraints. Furthermore, the company has set an ambitious target to increase its charging point network from around 2,000 to over 100,000 by 2030. Average selling prices are expected to rise, driven by higher-end models and growing EV contributions.
